 and oh great Elizabeth thank you for coming on come on in Elizabeth Elizabeth Chulowski GM of the online services division of Citrix I appreciate you coming by and we thought you forgot about us but glad you could make it welcome to the Cube so we're here at SiliconANGLE.com continuing coverage exclusive of Citrix Synergy in San Francisco California we're live and have total of 15 hours of programming Dave so this is the Cube our flagship telecast where we go out to events get the knowledge extracted out of their brains share it with you have a conversation thought leaders executives bloggers whoever has knowledge to share we want to sit down and talk to so Elizabeth thanks for coming in and and sharing with us sharing his power as we learned from CEO box.net so the first question is is that we had an analyst on David Cahill as part of our team we're talking about Citrix and he covers all the conference calls and earnings calls and he said you know so what do you think about you know go to go to manage and the SaaS business SMBs like oh it's a legitimate business but everyone talks about the Zen desktop doesn't server but it never really gets talked about on the analyst calls but it's a legitimate business he says in his Boston accent so you run that business so do you feel like you're left out tell us you know I'll see you're running give us an update on the business because it's not a small business I mean it's no no it's a very significant business and maybe we were a little like that the child that you had that was just always perfect in no trouble so you just let them do their thing but when we were acquired by our start of the company was as expert city in Santa Barbara so that was ten years ago and when Citrix systems acquired us about five and a half years ago we were a very small part of the business so you know low percentage and so when you were talking to the analysts particularly the financial analysts they actually weren't very interested when we also were a pure software as a service play so we do no on-premise that's our history and that's our core core value prop and five years ago that was kind of a strange concept in the world also but you know fast project yeah exactly fast forward and you know the last couple of years you see it really adopting software as a service and now everybody's talking about cloud right and so so we're in the picture now so I think you'll see us talked about a lot more going forward because we're a bigger percentage of the Citrix story both in terms of revenue and in terms of just let's let's make you move out of Santa Barbara didn't know we in fact we we've grown we now have a huge campus in the northern part of Santa Barbara 600 people there and 600 others worldwide nice lifestyle business I guess they say big company no yeah California's like that I live in Palo Alto I can't complain yeah but Santa Barbara's La Jolla Santa Barbara Santa Palo Alto I'll take top three winding up to come to work good locations we'll take them okay now getting back to Citrix Citrix has really been cranking so talk about the percentage of the business that you run and size-wise and just give us the quick stats on the rundowns could want to get that on the record the analyst out there watching this is big big part of their thing yeah yeah so so Citrix online that that as a percentage of Citrix systems you can go and take a look at that in the earnings calls I'm not going to court off the top of my head let me talk about the Citrix online part of the business so we've got picture three yeah three lines of business so we've got a collaboration line so that's go to meeting go to webinar go to training we've got the IT services line which is what I run and that's go to assist and go to manage and then we've got our access in cloud which is kind of our our future type products including including some of the go to my PC which was a well-known consumer brand but the part of my business we're actually combined with access about 60 percent of the online business so very significant of the Citrix online business so that would be referred to a sass or we're also so anything that I talk about that has a go-to name in front of it is software service on the earnings calls the last quarter sass was quoted about a hundred million dollars and that's that's in the quarter on the quarter right yeah a hundred million dollar revenue up 17% that was sequentially your year it's probably year-to-year yeah but so that's that's your business that's our business that's the Citrix online software as a service business that's focused on the small and medium size on a run rate basis we're talking about 400 million growing 17% that's that's as I said as I said meaningful business yeah legit as David Cahill saying I mean it's legit it's a little bit out of a 1.6 billion dollar revenue base right yeah and with the kind of growth rates that we're putting down you can imagine your year we're gonna be more so the world spins in Citrix direction you guys just we've been talking early about how you guys got the triple threat going on great poll position in this new emerging cloud market personal private public with nice public presence with Zen collaboration side just scales beautifully with desktop virtualization kind of sandwiching in the middle this private cloud gray area is gray area you know a lot of people have proof points but you know Zynga is one it's a hybrid but it's emerging right the collaboration stuff scales but your business in particular is perfectly because you have a tangible thing you could roll out today across the board from enterprises down to anyone right any size right you're talking about that the software is a service absolutely yeah yeah as I started to say that the adoption of SAS by IT is just grown dramatically over the last couple of years and there's a lot of skepticism two or three years ago but it's one of the reasons why we decided to launch go to manage it's a product that's really for the IT professional and I think if we had tried to do that even three years ago we would not have seen the great kind of traction and the accolades that it's getting from the profession today so what's the biggest driver right now that you're seeing this power in your business you mentioned as a big opportunity we agree with that but I mean in terms of from your perspective you look at the mega trends what what a couple mega trends are really really powering in your business yeah one is the consumerization of IT you guys probably heard that from every speaker that we've been talking about for years yeah but if you finally is here thank God if you look at it with particularly the online business for Citrix that has affected the small and medium-sized business more I think than any other part of the market because you've got now small companies that have they used to have like a PC that the secretary would run to keep appointments and now they actually have you know data closet with servers and virtual servers and they need to take care of those they need to manage them so you've got doctors and lawyers are now savvy with IT terms and then you've got them taking devices into their own hands and that's driving our business hugely and the cost that they were employing to keep that up and running was significant I mean now they just turn key that to you yep and that's kind of where you guys cut step in right yeah yeah to our customers that use the software take us through the biggest use case where you see in the most adoption right now for the sasside so I'll talk a little bit about collaboration right so so we have seen just huge growth in that business and looking at our product lines that's the one that's leading in terms of growth rates and it's just the idea that right now if you're going to meet with somebody you don't need to be in person and the software is so ubiquitous and so easy to use that everybody needs it we use it every Friday you really now with HD faces yeah well right that's not necessarily a good thing with our company John and Dave of course it's okay yeah so the collaboration business is growing much faster as you said it was 30% growth last quarter John so really a bright spot yeah yeah it very much is and it's a global trend not just a North American trend but I think that's the other the other thing that's been driving our growth rates and you saw us doing acquisition in Germany at the beginning of the year it's it's it's worldwide so what's the vision for the sass business kind of can you bumper sticker that for us the vision for the sass business is that everybody both consumers all the way through SMBs are going to be using these kind of products all the time both collaboration they'll be running their business on the IT services products and then they'll be using them at home to connect to the world right on any device on any device anywhere that fits beautifully into the overall Citrix vision right yeah exactly you've got you know you've got all of our great Zen type products running the enterprise and then you go down to our sass based business and it's the same story the same vision but for a different target market you guys have been actually built from the ground up sass 100% not a lot of on-premise as you mentioned talk about the the role of orchestration because we were been talking all day about orchestration we had some of the folks on from Citrix about that talk about how complex it is with the HDX is in particular was a good interview real Pat that guy was passionate about his product that I was like smiling so much after after I miss that one you know Derek orchestration big buzzword around you know tying things together but behind the curtain on the sass side you have that operation talk about some of the orchestration things that are that people don't might not know about that you guys are implementing with the new Citrix now that you're bolted on to Citrix there's some stuff going on behind it how does that all work yeah I mean that's kind of an interesting question because our you know our persona to the market is that you don't have to worry about that right don't don't ask me that question you don't want to see the man behind the curtain but his name is Zen and but if if you kind of peek behind the curtain on our side it's it's how we're growing that that quickly because people are attracted to these services and we're just up and running all the time and they don't have to do anything except you know generally go to a website and sign up for the product and they've got it right but in the background there's a huge global set of data centers and completely redundant services taking you know just millions and millions and millions of sessions hour by hour over the day and 24 by 7 so that's all powered in the background by by Zen and Citrix and so Dave and I have been talking about this for since since EMC we're when we kind of had the aha moment that the services business being both delivering services as you know as a service cell for service pass etc to services like support are changing really radically and we've had you know EVPs of customer organizations talking about this we've talked to you know boutique consultancies we talked to see a city old school right outsourcers means completely radically being deconstructed yeah so I want to get your opinion on that and we're launching a services angle focus over the next six to 12 months because there's a lot of innovation going on and not only delivering the services but using cloud for services like customer support like my market intelligence that we use for example to using mobile devices so yeah can you share any knowledge there yeah I mean that's a great question because there's just a complete sea change that's going on in the service world today so if you look at contact centers five years ago even you know totally addicted to premise based software it would take them you know the change out of systems in the service world would be you know 10 15 years and that's all changing from a couple of different trends ones that they're adopting sass right so that's that fits our story wonderfully but we led the market in remote support we created that market we have 40% market share in it and what's happening with that is it's becoming now just a ubiquitous part of that change in the service trend and that's driven by by mobility so everybody has three or four different devices and you know every individual has them somebody's got to support them so every company now needs a contact center that has remote support and can go out and help their their end users so it's being driven by that and it's being driven by the fact that you've got companies like Salesforce and the contact centers need to take remote support and just plug it in seamlessly so that the person supporting it doesn't have to do the overhead of cutting and pasting records and you know taking taking any time out of their day to manage actually the contacts that all happens automatically in the background we often say that the world is going from a connected world to a managed world right so we used to support connected devices now we manage this is a disruptive change I mean literally the wealth creation that has happened from quote services the value chains and all those processes that you know the management consultants would create are gone so money just doesn't disappear shifts so we see the shifting and what opportunities do you see for people getting into the services from a skill set just opportunities because this there's some innovation going on and radical change at the same time right you know it's it's gone from this this total centralized world of services I mean you mentioned the huge outsourcers to niche very very defined use cases that open up the world for lots of smaller companies so you know the SMB trend is affecting the contacts in our world also so you've got players that are able to do a particular service for a particular device and do that very well and because it's all connected in the background with saw with SAS based software you can use their services orchestration to work as a generic comes all together nice innovation and service money's not just shifted it's grown it's grown I would agree with that yeah I mean I mean this wealth creation on the new model there's the old the incumbents are dying we had we were just that last week at SAP Sapphire and the big conversation was agility business agility and and the the wealth creation going on there is disrupted those years of suits and you know millions of dollars in one year deployments ten year outsourcing deals and yeah it's just like so that's upside down right so all this is interesting to us I mean maybe not everyone else but people are making money and this is like not the sexier the business but this money being made real dollars yeah I I I often compare our remote support business to the guys that showed shovels during the goldmine days right you know yeah the cliche and it wasn't the gold miners that actually made the money it was the people that made the shovels true cliche yeah yeah well we make the shovels and we make really really good shovels well we really appreciate your time my final question the day you can ask one more question is five years out from now where do you see the Citrix online business in real in the world around it at the what's gonna look like yeah five to ten years out how's it gonna morph and change both Citrix online and then the rest of the world around it right yeah so so you heard Mark's keynote yesterday so we've we've got the the individual consumer cloud we've got the private cloud we've got got the public cloud well we're the public cloud so we're gonna be offering services in the public cloud for everyone right yeah and the other thing you talked about is is I loved his manifesto right he said you know the five things and and of course you know one of them was self-service right and it fits really perfectly into what you guys are doing so so congratulations on on running a great business and not being done we're just getting started on the next earnings call we're gonna actually ask the question that's for you and you know how's that SAS business doing don't tell Mark and Dave let's plan now the question so what question should we ask we'll plant the questions everyone will know it'll be us excellent management or Elizabeth thanks so much thank you very much